This document summarizes a study on the investment management practices of Al-Arafah Islami Bank Limited's Gulshan branch in Bangladesh. The study aimed to analyze the bank's investment approval process, risk assessment system, existing investment risks, and ways to improve performance. Primary data collection methods included employee interviews, observation, and customer conversations. Key findings were that the bank follows regulatory procedures, officers are knowledgeable about client screening, and decisions are made at the branch level to speed up the approval process. Recommendations included decentralizing decision-making further, expanding the employee base, and increasing training on Islamic banking.

2. An Internship Program
Supervised by
Muhammad Helal Uddin
Prepared by
Rafiqul Islam
ID:1028BBA01619

3. “Investment Management of Al-Arafah
Islami Bank Limited:
A Study on Gulshan Branch”

4. Main Objective:
 The main concern of this report is to identify Investment Management of Al-
Arafah Islami Bank Limited.
Specific Objectives:
 To Explain the Investment approval and sanction procedure of Al-Arafah Islami
Bank Limited;
 To Explain the Investment assessment and risk grading system of Al-Arafah
Islami Bank Limited;
 To analyze the investment risk of Al-Arafah Islami Bank Limited.
 To identify the problems related to Investment Management of Al-Arafah Islami
Bank Limited of Gulshan Branch.
 To suggest the better ways of enhancing the performance of the Bank.

5. Research Type:
This is a Descriptive Research, which critically analyzes the investment activities of
the Al-Arafah Islami Bank Limited.
Sources of Data:
To prepare this report all the necessary information collected from primary and
secondary sources of data.
Primary sources:
i) Discussion with the Employees
ii) Interviewing Employees and Manager
iii) Observation on Organizational procedures and structures
iv) Conversation with the customer.
Secondary sources:
Internal: Annual Reports of Al-Arafah Islami Bank other published
documents of the bank, Al-Arafah Islami bank Website.
External: Books, Articles, Journals, Newspaper, Web browsing
Survey Period:
I have worked for this report through my internship program The survey period
was two months in which I have researched for this report.

6. Investment:
Finance investment is putting money into something with
the expectation of gain that upon thorough analysis has a
high degree of security for the principal amount, as well as
security of return.
Investment Management:
Investment management is a dynamic field where a certain
standard of long-range planning is needed to minimize the
risk and maximizing the return on the invested fund.
Credit Evaluation Principles:
 Safety
 Liquidity
 Profitability
 Purpose

7. Procedure of Investment:
Submission of Required Proposal
Analysis of the Proposal
Track Client’s previous record
Field Visit
Signing a Promise to Purchase
The First Sale Contract
Signing Contract
Delivery& Receipt of Commodity

8. Documents needed for preparing investment
proposal:
 Application for investment facility (Organization pad)
 Trade License
 IRC for importer
 ERC for Exporter
 Membership Certificate of Chamber of Commerce
 TIN (Tax Identification Number) Certificate
 VAT registration certificate
 Bank Account Statement
 Account Statement from others Bank
 Others Assets Statement
 CIB (Credit Information Bureau) Report etc.

9. Terms and Conditions Applied:
 The disbursement will be made after Completion of
all documentation and other formalities after full
satisfaction of the branch.
 Any drawing beyond the sanction limit will not be
allowed under any circumstances.
 The disbursement will be allowed under the
principle of Shariah.
 The client will have to route all of his/her business
through the Bank gradually.
 All legal fees, Insurance Premium and other relate
cost(s) must be carried by the client.

10.  Balance Confirmation Certificate must be submitted to
the Bank regularly.
 A signboard with the inscription that “The property is
mortgaged with Al-Arafah Islami Bank Limited, Gulshan
Branch, Dhaka”, should be displayed at a conspicuous
place in a prominent manner on the mortgaged property.
 In the event of client failure to make full payment of sale
on the due date, compensation shall be recovered from
client as per Bank’s rule as mentioned earlier.
 Any change of address of the client must be notified to
the branch immediately after change of the same.
 The Stock Valuation Report/Statement to be submitted
to the Bank on Yearly basis.

11.  The process of CIB (Credit Information Bureau) to
permit investment is lengthy. It takes 15-20 days to
get the approval of the investment proposal.
 Usually Banks are responsible to invest to those who
are eligible for the profitable business. But in reality,
small investors do not get the funds easily. They
have to fulfill more terms and conditions than those
who have greater influence in the business
community.
 AIBL follows branch banking. So, they do not need
wait for long time for getting the permission from the
head office to approve investment proposal.

12.  They maintain the rule and regulations of Bangladesh
Bank for taking decisions of investment.
 Officers in Investment Department are very efficient to
their responsibility. They are very much aware in
choosing right person for investment to ensure its
recovery.
 In Investment Department of this branch, the each and
everything is crystal clear before the customers. If clients
do not want to know about the Banking information,
sometimes the hide information to their clients.
 AIBL Gulshan Branch capable enough to disburse huge
amount of funds, because of their strong liquidity
position.

13.  Decision making power should be decentralized effectively so that
business can rapidly be enhanced.
 This bank should be appointed a number of qualified employees at
very soon for maintaining the normal flow of works.
 Effectiveness of credit policy depends on effective information
system so that, bank should increases better accounting information
system and management information system as well.
 AIBL can offer student loan for higher education and different
deposit schemes for college and university going students.
 It would be better if Islamic banks had the opportunity to work as a
sole system in an economic development.
 They should set up training institutions on Islamic banking and
should impart training to borrowers and other public to increase
their clients.
 They have absence of an organized Islamic inter-bank money
market And
 They should increase co-ordination and co-operation among the
Islamic banks

14. Al-Arafah Islami Bank Limited is an Islami Shariah based bank in
private banking sector. The time period of this bank is very little
although AIBL has already made a good position among the
Islam oriented bank as well as private bank and created an image
in client’s mind.
Al-Arafah Islami Bank Limited will continue to reinforce their
efforts to meet the needs and expectation of the customers. AIBL
sets goal and challenges for employees to respond better to
customer’s needs. AIBL make themselves from different the
competitors through Shariah based services and flexible and
personalized services.